Would a $25,000 Downpayment Assistance Make the Housing Market WORSE?

VP Harris' proposal to give $25,000 in downpayment assistance to first time home buyers would likely make things worse in the housing market.

[jonreeves]

Listen, 2 policies:

1 give 25000 to first time home buyers. This will necessarily increase the purchase price of all homes.

2 tax the increased value of home as capital gains. The first policy guarantees the government this tax revenue.

The gov’t is going to charge you money for a problem they created. That’s called racketeering. It’s a crime if anyone else does it.

[jodyhunt]

Don't worry guys. The 25k in assistance is specifically for first generation citizens...aka immigrants.

[falsificationism]

I'll bet that $25k (which won't happen btw but if it did) will just be used for earnest money, raising the bar by $25k for all buyers.

[MarRon]

It is funny that Kamala says government will pay 25K towards the purchase of a house. Taking that an average price is 500K and banks asks for at least 20% down which is 100K and also you need to have a high income to qualify for a loan, I wonder if anyone will receive that 25K.

[MrJlnightshade]

They should limit the amount of homes large investment 'groups' can own without increased taxation to discourage real-estate market monopoly. This would make more inventory available and drive down home prices. Significantly reducing interest rates will bring us right back to where we were and shoot up home prices again.

[MgtowRubicon]

USDA and VA loans are 0% down payment. FHA is 3.5% down payment.
If that's not bad enough, then the government is offering effectively negative down payments up to $25K.
Prices always rise to consume all subsidies.
Inflating again the massive debt bubble.

[jimf.]

The Democrats will give you 25k down payment assistance right after they pay off your student loans. 😂

[jazzman]

It is my understanding that part of the plan is to add 3M homes to the national inventory for these 1st time home buyers to purchase. That seems to move the housing situation in the direction of goodness to me.

[susanriner]

I don't like the idea of relaxing permitting. I've purchased a new build and even with the current permitting you have to watch builders and contractors. We found things that they cut corners on even though we were on site frequently. WIthout some "red tape" who knows what you would ultimately get.

[stevelongbeach]

They stopped making land a few years ago! Love you guys!

[Hcb-jogp]

If you want something as screwed up as you can, just put the government in charge.

[billscott]

I think their hope is to keep the prices as inflated as they are, using the 25K as a lure to increase demand.

[DionTalkFinancialFreedom]

$25k more for the down payment.
Down payment is 3% conventional for first time home buyers.

Possible increase to purchase price is over $500k. Since the 25k is just a part of the down payment.

[One_Cebu]

How about giving that 25K to the sellers to incentivize them to sell? Increasing the inventory, thus lowering the price?

[comochinganconesto]

So wouldn't this then affect first time home buyers (as defined by the federal government later on after this gets passed)... encouraging them to take on existing inventory or move to another location?

[Winstonia]

I thought that what I read was the 25K is only going to go to first generation Americans. That's going to really shrink the pool of

[Elegyofawesomeness]

If houses are an investment... could I instead have $25k to buy S&P500??
All jokes aside, we need to open up residential zoning to allow a wider range of diverse housing options, so ppl aren't forced into choosing between a single family home, and a large apartment complex.
And stop developing on farm land!! The further your food has to travel to you, the more it will cost! Protect our farm land!

[ralemc]

If you google it this is for people of color. Black, Asian, American Indian and Latino. Of those who parents own a home you need not apply.

[cmasters]

So if you were born and raised here you get $25, 000 towards by a house . If you come to our country illegally you get a free house. Who is paying for all of this ?

[hawkmans]

subsidizing sounds good but without inventory will drive up price, support the builders to build and create new comunities and increase the supply. Isnt this basic economics ! Smh... Its not political... Its gravity. Youre right the problems must be fixed locally. Appreciated the video.